In a significant development that could impact the racing and gambling industry in New Zealand, Racing Minister Winston Peters announced a repeal of the betting levy. A betting levy from the profits generated by the racing industry in the country is paid annually to the crown.
The betting levy amounts to 4 percent of the total profits. A sum of $13.9 million was paid in the levy for the FY 2018.
Now the minister has announced that the betting levy would be redirected to the racing industry over a period of three years.
“Redirecting the betting levy is a step towards revitalizing of the racing industry. It was a recommendation of the Messara review of the racing industry, and was endorsed by the Ministerial Advisory Committee (MAC),” Peters said.
“The funds will be redistributed to the racing codes and Sport New Zealand, with a proportion set aside to support the reduction of gambling harm.This change will provide an important source of revenue for industry investment decisions,” he said.
Racing is quite popular in New Zealand and brings significant revenues to the state. Talking about the motivation to repeal the betting levy, Peters said, “The racing industry plays a vital role in the New Zealand economy, having contributed $1.6 billion to the economy in 2016/17 whilst employing tens of thousands of New Zealanders, many of them young, and boosting New Zealand’s exports.
“It is important that the industry is revitalised and placed on a sustainable footing for the future. Redirecting the betting levy funds is only one of a number of steps the Government is undertaking.”